According to the Taylor Rule the Fed kept interest rates too high from 2004 to 2006 and helped create the mortgage bubble.
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Q17: Housing investment is sensitive to changes in
Q18: Unexpected high levels of inflation aid debtors
Q19: An increase in the money supply should
Q20: Easy monetary policy strengthens the dollar.
Q21: The expected effect of quantitative easing (QE)
Q23: Monetary policy first affects financial markets and
Q24: Full employment means that everyone in the
Q25: The Fed perfectly controls the money supply.
Q26: Reserve requirements are not useful for "fine
Q27: Interest rates and the money supply tend
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